The firm has to drop x86 agenda in Mobile for now possibly for ever, and play to win, not play to force x86 into an ARM world as yet.
With unbeatable Intel process technology always as yet leading in process, they could make a killer ARM platform if they comprehended that reality forces their hand to do so expediently ( ie use 35nm and smaller in their best fabs to be the best ARM out there, and once gaining customers only then reassess strategy )
Since ARM product deployment / implmentation would be the quickest design to fab Intel might ever see ( keep the design mods simple ) the facts are this is a no brainer, but hard to swallow culturally for the best and biggest CPU firm in the world.
Yet they have to do the obvious - priority fastrack a complete leading ARM solution, in both design and support.
Imagine a power sipping ARM at 32nm and smaller, say 5? ghz dynamically clocked and then handset manufacturers might be flocking to the product.
Intel might have a chance to mop up in the product space instead of moping about oportunity lost.
Intel process tech is unbeatable. And design is leading when market focused, instead of x86 obsessed.
Bite the bullet and do it Intel.

There is some not so minor chance this might be connected to the higher power dissipation in the earlier / present Chipset/ controller companion ot the Atom CPU, that rendered power dissipation of the early products uncompetitive despite advances in the Atom. This is being fixed in the latest Atom products, but too late.
If I remember correctly the initial Atom chipset controller IC was a retread from a non mobile design, and might have in Atom use only had minor tweaks to get the Atom properly outfitted. Intel was slow to remedy this, it would be ironic if this remained on a lagging process ( the Atom's controller IC ) due to China ( ie the lagging Intel China Fab @? 65nm ).
By now if an Atom derivative were entirely competitive in power consumption ( including Chipset controller IC ) with ARM solutions, the potential momentum for x86 in smartphone mobile is a faint glimmer fading on the horizon dominated by ARM - the ARM ecosystem is too diverse, and far lower margin than a typical successful Intel solution.
If Intel were to have a chance to recoup losses in market share not gained in Mobile, they have to produce a super ARM like NOW (without regrets)- licensing from ARM yet again and migrating to 35nm or smaller within 6 months, with a COMPLETE solution on the CPU and controller, and then the RF baseband integrated to scoop the competition.

There is some not so minor chance this might be connected to the higher power dissipation in the earlier / present Chipset/ controller companion ot the Atom CPU, that rendered power dissipation of the early products uncompetitive despite advances in the Atom. This is being fixed in the latest Atom products, but too late.
If I remember correctly the initial Atom chipset controller IC was a retread from a non mobile design, and might have in Atom use only had minor tweaks to get the Atom properly outfitted. Intel was slow to remedy this, it would be ironic if this remained on a lagging process ( the Atom's controller IC ) due to China ( ie the lagging Intel China Fab @? 65nm ).
By now if an Atom derivative were entirely competitive in power consumption ( including Chipset controller IC ) with ARM solutions, the potential momentum for x86 in smartphone mobile is a faint glimmer fading on the horizon dominated by ARM - the ARM ecosystem is too diverse, and far lower margin than a typical successful Intel solution.
If Intel were to have a chance to recoup losses in market share not gained in Mobile, they have to produce a super ARM like NOW (without regrets)- licensing from ARM yet again and migrating to 35nm or smaller within 6 months, with a COMPLETE solution on the CPU and controller, and then the RF baseband integrated to scoop the competition.

Intel is a leader in high end controllers and processors. I guess its better to be leader somewhere rather than trying something thats flashy. Phone business although very lucrative but is very very competitive. I guess they have burnt their hands.

Remember Intel mentioned that internet is important and it is all about software and ECO systems. No other device cannot browse in a secure manner. cannot download web pages, etc...
More devices are browsed with non-intel architecture....
Agree their fabs are Awesome (thanks to Bohr and company).
With closing remarks. Goos luck Intel and see if you can turn around...
by 2012.

It's not just about Performance/Watt Dr. It's also about the software and hardware ecosystems, backward compatibility etc. While I can see that Intel will (is?) lose its dominance, I would not belittle their technolgy; they will still be a player, just not the giant they have been...